Ford and Honda join scrappage scheme

Ford and Honda have announced they will be taking part in the UK's car scrappage scheme despite last-minute hitches involving VAT and dealer-manufacturer arrangements.

The car makers missed the official launch of the Government's "cash for bangers" initiative as it waited for issues to be resolved.

However, Ford has said it is now ready to join the scheme, which has already led to an extra 3,000 orders for the firm.

Ford will now be offering a Fiesta for £7,995 and a Focus for £9,995 as part of the initiative.

Nigel Sharp, managing director of Ford Britain, said: "Ford is putting its full weight behind the UK vehicle scrappage scheme, which will not only boost sales but will also bring positive employment and environmental benefits too."

The scrappage plan, which was announced in the Budget, is designed to boost new car sales by offering motorists £2,000 to swap cars and small vans more than 10 years old for a brand new vehicle.

During a visit to a Nissan dealership in north London, Prime Minister Gordon Brown and Business Secretary Lord Mandelson hailed the scheme and the companies involved, but it later emerged that Ford and Honda were among a number of firms not able to take part immediately because of problems.